Saudi, Qatar and Norway to see big losses on UBS deal for Credit Suisse -Dlight News

Saudi, Qatar and Norway to see big losses on UBS deal for Credit Suisse

Just six months ago, Saudi National Bank paid $1.5 billion for a 9.9% stake in Credit Suisse. That stake is now worth about $215 million after UBS UBS, -5.50% reportedly swooped in to acquire its fallen rival for more than $2 billion. see: UBS is reportedly in a deal to buy Credit Suisse for more than $2 billion, and while the Saudis certainly can’t be blamed for the scandals and mistakes made by Credit Suisse CSGN, -8.01% CS, -6.94% , they might be. Own mistakes that led to the Swiss authorities finally having enough. Saudi National Bank Chairman Ammar Al Khudiari went on Bloomberg TV on Wednesday and was asked if he would increase his stake. “The answer is absolutely no, for many reasons beyond the simple reason, which is regulatory and statutory,” he said. Investors panicked, sending Credit Suisse shares down 24%, even though his comments were fairly consistent with what the bank said in October. At the time, it said it had no current plans to move beyond the 9.9% shareholding, though it said “any future investment will be assessed individually at that time, taking into account the financial impact, capital treatment and merits of such investment accordingly.” Long-term shareholder value creation.” The Saudi National Bank also made it clear that they were not interested in expanding internationally, so Credit Suisse’s investment was a “financial opportunity” with potential benefits to serve its own wealthy clients with Credit Suisse products and services. The Saudis are not the only Middle Eastern investors nursing heavy paper losses. Qatar Investment Authority owns 6.8% of Credit Suisse, making it the sixth-largest holding in its portfolio. Olayan Group, headquartered in Liechtenstein but founded by a Saudi tycoon, is the No. 3 shareholder. Another major shareholder is Norges Bank Investment Management, Norway’s sovereign wealth fund.

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